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Did you know that Realtors are legally bound to confidentiality?

This sometimes creates problems for Realtors. Imagine this scenario. A seller tells a Realtor that he has his house listed with that he had a tenant in the house that was running a marijuana grow op. Then the seller tells the Realtor that he does not want him to tell any perspective buyers. This is a problem. One the one hand the Realtor is required by law to disclose what they call "Material Latent Defects", which a grow operation is one of them, so he has to disclose this to prospective buyers. Then on the other hand the Realtor is bound by a duty of confidentiality to his seller so he cannot tell prospective buyers about the grow-op. What does he do? The answer is that if he cannot convince the seller to be honest he must cancel the listing. He still cannot disclose the fact because the obligations of confidentiality extend after the listing is canceled. This is one of a few situations for Realtors that have no happy ending.

Century 21 Canada Limited Partnership currently has franchise opportunities available in select markets across Canada. The intent of this communication is for informational purposes only and is not intended to be a solicitation to anyone under contract with another real estate brokerage organization. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC, used under license. ® Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Century 21 Canada Limited Partnership.

Certain listing content on this website has been provided by The Canadian Real Estate Association. The compilation of such Listing Content is owned by The Canadian Real Estate Association and/or its member Boards and Associations and licensed to Century 21 Canada Limited Partnership.